Energy Price Cap Rises Again: Latest Increase and What It Means for You
Record-Breaking Increase in Energy Price Cap
In 2022, the energy price cap underwent its most significant increase ever, with a 54% cap increase in April and a further 80% increase in October. The current energy price cap stands at £1,971 per year, effective from January 1st to March 31st, 2024.
Reduced Cap for April to June 2024
For the period from April 1st to June 30th, 2024, the energy price cap has been set at £1,690 per year for a typical household using electricity and gas and paying by Direct Debit. This is £238 lower than the previous cap.
From April 1st to June 30th, gas prices will be capped at 6p per kilowatt-hour (kWh) and electricity at 24p per kWh. Previously, gas was capped at 7.42p per kWh and electricity at 28.62p per kWh.
Impact on Households
Typical household energy bills increased by 54% in April 2022 and 27% in October 2022. Despite recent falls in wholesale prices, bills remain approximately 59% higher than their winter 2021-22 levels.
It's important to note that the price cap is set on unit prices, meaning that consumers who use more energy will pay more.
The energy price cap will remain in place until March 2024, after which it will be reviewed again. From September to December 2023, the cap was set at £1,834 per year and has increased by £94 for a typical UK household.
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